Tesla announced on Thursday plans to expand the reach of its Energy division with a new Megapack battery storage facility in Hokkaido, Japan.
The project is scheduled to connect to the grid next summer, and will provide 6,095 kilowatt-hours (kWh) of storage capacity. That will be enough electricity to keep 500 homes powered.
Excess energy stored in the batteries will be used to reduce costs by supplying stored energy during peak periods and help stabilize the local energy grid.
The new facility in northern Japan will be built in partnership with Global Engineering, a Japanese power retailer who will operate the site upon completion. The engineering firm Ene-Vision will also be involved in the project and handle engineering, procurement and construction, reports Reuters.
Construction costs are estimated at about ¥300 million ($2.7M USD).
Tesla’s Energy Division has seen massive growth in recent years. In Q2 2021 Tesla reported $801 million in revenue from its Energy division, an increase from the $370 million reported in Q2 2020.